Use Bayes' Theorem to Find the Indicated Probability

question 83

Multiple Choice

Use Bayes' theorem to find the indicated probability.
-In one town, 7% of 18-29 year olds own a home, as do 27% of 30-50 year olds and 52% of those over 50. According to a recent census taken in the town, 27.5% of adults in the town are 18-29 years old, 38.4% are 30-50 years old, and 34.1% are over 50. If an adult is selected at random from the town and found to be a home-owner, what is the probability that they are aged between 30 and 50?

• A) 0.384
• B) 0.345
• C) 0.27
• D) 0.104

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Definitions:

Aggregate Expenditure

The total spending in an economy, including consumption, investment, government spending, and net exports, at a given time.

Government Purchases

Expenditures by the government sector on goods and services intended to satisfy public consumption and investment demands.

Inventory

The total amount of goods and materials held in stock by a business, warehouse, or store.

Gross Domestic Product

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.